KUALA LUMPUR, Nov 8 — The government is expected to collect about RM800 million in annual revenue from the implementation of the capital gains tax (CGT) effective March 1, 2024, based on share ownership transfer trends in recent years, said the Finance Ministry (MOF).
In a written reply to the Dewan Rakyat yesterday, it said the CGT, to be imposed at a rate of 10 per cent on net gains, will only apply to the disposal of unlisted shares of companies, limited liability partnerships, cooperatives and trusts, whether local or foreign entities that are shareholders in a company.
“The relevant legislative amendments are being implemented towards this end.
“Guidelines will also be issued to provide more clarity on the implementation of the CGT,” said the MOF.
The government’s decision not to impose the CGT on listed shares is to ensure the capital market continues to grow for existing listed companies and in line with efforts to maintain investor confidence.
“This will also allow us to raise the competitiveness of the country’s capital market globally,” the MOF said in response to a question from Putrajaya MP Datuk Mohd Radzi Md Jidin.
After taking into account stakeholders’ feedback, the government believes this maiden step of imposing CGT on the disposal of unlisted local shares by taxpayers other than individuals is appropriate.
The stakeholders who provided feedback were the Malaysian International Chamber of Commerce and Industry, the Associated Chinese Chambers Of Commerce and Industry of Malaysia, and the Malaysian Investment Banking Association.
“This step is also in line with the direction of facilitating and improving aspects of tax administration, in addition to being one of the efforts to diversify the sources of national income,” MOF said.
— Bernama
